Builder confidence up one point
Throughout 2026, the National Association of Home Builders (NAHB) )/Wells Fargo Housing Market Index (HMI) remained under 40. August results continued that trend in builder confidence, despite a one-point increase to 35.
This is largely attributed to factors across the industry: elevated mortgage rates, rising material costs and geopolitical uncertainty. NAHB reported that, despite these conditions, custom builders and builders in rural markets perform better than their counterparts.
“The latest HMI survey also revealed that 35% of builders cut prices in August, down from 37% in July, and unchanged from June (35%),” said NAHB Chief Economist Robert Dietz. “The average price reduction was 6% in August, the same rate as the previous month. The use of sales incentives was 63% in August, unchanged from the previous month.”
